How to answer this Strategic interview question about Reputational Risk for Senior-Level Risk Manager?

How would you help a bank manage reputational risk in the wake of a public crisis?

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Risk Manager

Strategic

Asked at

KPMG

Difficulty :

Hard

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Explanation

This question evaluates your ability to manage reputational risks for banking clients, especially during crises. Recruiters assess your strategic thinking, stakeholder management, and crisis mitigation skills. Common pitfalls include not addressing how to rebuild trust or failing to outline a proactive strategy. A strong answer involves steps like stakeholder communication, monitoring public sentiment, and creating long-term trust-building initiatives. Preparation involves studying crisis management strategies in the banking sector.

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Answer Example

I would start by conducting a root cause analysis to understand the origin of the crisis. Next, I would collaborate with the bank’s communication team to issue transparent and timely statements to stakeholders. Additionally, I would implement a long-term reputational monitoring system. For example, I helped a bank recover from a data breach by introducing a public communication plan and enhancing cybersecurity measures, which improved customer trust scores by 30% within six months.

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